Put OSR into store, advises Banks

By FWi staff

OILSEED rape growers are being advised to put their crops into store this harvest, if possible, in anticipation of improving prices later in the season.

New-crop values are currently quoted at about 112/t ex-farm for immediate movement, better than last years dismal 99/t, but still far from spectacular.

And, with harvest now under way in the most southern EU member states, further pressure is expected in the coming weeks, according to Banks Agriculture.

But thereafter, some improvement is forecast with a 6/t carry already pencilled in for October/November business.

A combination of factors is behind this bullish outlook.

Increasing demand for rape oil on the continent, a continued weakening of Sterling, a preference for rapemeal over soya meal as a GM-free source of protein and a tighter than expected domestic supply all contribute.

Indeed, latest planting figures from EU trade body, COCERAL, point to a 10% cut in area and output this harvest, with plantings back to 5.45 million ha.

This should ensure there will be no scalebacks on area aid.